He also requested the PM for simplification of forest clearance process for roads approved under Pradhan Mantri Gramin Sadak Yojna (PMGSY).
The Chief Minister wrote two separate letters to the Prime Minister in this regard, an official statement said.
Stating that Uttarakhand shared geographical conditions similar to the northeastern states and Jammu & Kashmir, the chief minister urged the Prime Minister to provide fund in 90:10 ratio like it was providing to those states.
He underlined that Uttarakhand, despite enjoying the status of "special state", was being provided fund in 50:50 ratio which was "not justified".
Union Rural Development Minister Jairam Ramesh, during his recent visit to Uttarakhand, had assured to provide the fund in 90:10 ratio.
The Chief Minister sought an amendment in the forest clearance process for proposed roads under PMGSY.
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He advocated forest clearance approval by regional office of Union Environment Ministry level. Presently the State Advisory Group can approve the clearance upto 5 hectare forest land only.
He pressed for increasing this limit to 20 hectare. Bahuguna has stressed on following a simplified process adopted for the roads in border areas for roads under PMGSY too.
The Chief Minister, in his letter, has also suggested the Prime Minister to open special cell of Union Environment Ministry in its regional offices.
He demanded that Uttarakhand, like naxal affected areas, be exempted from compensatory afforestation for roads under PMGSY and the state be paid NPV reimbursement through Rural Development Ministry.